The Hindu Business Line : NTPC may split new orders between BHEL, global bidding route

Snapshot
A minimum number of projects would, instead, be earmarked specifically for equipment supplies by BHEL, provided the state-owned engineering major matches the quote of the lowest bidder that NTPC gets for equipment sourced through the competitive bidding route

Anil Sasi

New Delhi, April 16 In a bid to end the stalemate on the placement of bulk orders by NTPC Ltd for its upcoming “supercritical” projects on Bharat Heavy Electricals Ltd (BHEL), the Centre has firmed up a proposal whereby NTPC would call for international competitive bids for only a designated number of its upcoming “supercritical” technology-based projects, instead of resorting to global tenders for all upcoming projects.

A minimum number of projects would, instead, be earmarked specifically for equipment supplies by BHEL, provided the state-owned engineering major matches the quote of the lowest bidder that NTPC gets for equipment sourced through the competitive bidding route, according to Government sources.

NTPC is set to enter that market for new boiler and turbine packages worth over Rs 50,000 crore for its upcoming “supercritical” technology-based projects that would utilise new generation 660-MW and 800-MW “supercritical” units.

Placement of bulk orders with BHEL could set the stage for the standardisation of the 800 MW “supercritical” thermal sets in the country.

BHEL, the country’s largest power equipment manufacturer, needs to execute a certain minimum number of projects utilising the new generation sets in order to sufficiently absorb the technology, for which it has tied up with foreign partners.

BHEL had earlier sought bulk orders from its largest customer, NTPC Ltd, for the power major’s upcoming supercritical technology-based projects to be given to it on a negotiated basis in order to sufficiently absorb and indigenise the technology.

Talks, however, failed to make much headway and BHEL lost out on the former’s first set of supercritical-technology based projects to Russian firm Power Machines (which is implementing the 3x660 MW plant at NTPC’s Barh project) and Korea’s Doosan (which is implementing the 3x660 MW plant at NTPC’s Sipat station).

Following lack of progress in talks with NTPC, BHEL had begun looking out for alternatives and subsequently initiated talks with a bevy of States to form joint venture companies to execute coal-fired projects using the new technology units.

Units based on the “supercritical” technology, as opposed to the conventional sub-critical technology sets of 250 MW and 500 MW being used in the country so far, are considered to be superior in terms of higher plant efficiencies and economies of scale and in being environment friendly.

The technology is, however, yet to be tried out in the country, even though BHEL has been ready with it for the last two years and has been keen to test out the technology following its technical tie-ups with Alstom of France and Siemens of Germany to manufacture boilers and turbine generators respectively.

In case of the 500 MW sets, BHEL had established the technology by the eighth set that it executed.

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